Revolving loan fund is available in Kelliher
The city of Kelliher offers a business loan program called the revolving loan, which can be used for land, buildings, equipment, inventory and working capital. Refinancing or retiring existing debt is not allowed.
Any business within the boundaries of the service area is eligible to apply. Priority will be given to eligible business projects in the city of Kelliher.
For projects with total costs of $50,000 and less, one full time job must be created. For projects with total costs greater than $50,000, two or more full time jobs must be created.
Loans must be paired, on a 1:1 basis ratio, with other funds from banks, other loan sources or personal sources. Loan interest rates will be set on a case by case basis, but generally, rates will match the participating bank's interest rate.
Loans must be secured with collateral, which can be in a subordinate position to a lead lender, typically a bank. The basic loan application includes: a business loan application form, complete business plan including resumes of key people, personal financial statement of borrower and other data. As needed, other forms and information may be required to complete the application process.
A loan offer is contingent upon approval from the USDA Rural Development. Please plan and allow for several weeks for funds disbursement for approved loans.
For more information on the revolving loan, please contact Kelliher City Hall at 647-8470.